Stretch

Creator: Toby Crabel

Period: 10

Line 1: 3

Two lines are plotted below the chart in the Stretch indicator.

1 – Green line is Stretch indicator line

2 – The red line is the average line of the indicator

This indicator calculates the distance between the open and the high and low. The average of the minimum distance is plotted below the chart as a strength indicator.

It calculates two breakout levels for every single trading session based on the minimum average price distance from the open price during a defined period of time. The average price of the smallest difference between the open and either the high or low is a stretch indicator. Indicator displays two lines corresponding to breakout thresholds for the current trading session.

The indicator table value in TradePoint & RZone also provides you with a list of all values of this indicator for any group of stocks. This will allow you to compare the readings of this indicator across different stocks.

This indicator is also available in the System Builder of RZone & TradePoint for all charting methods. Using the system builder, you can develop various strategies based on the different conditions already present in this indicator. Additionally, it can be used with other indicators or price patterns to develop effective trading strategies. For any group of stocks and market segments, you can scan and backtest stocks based on those strategies.

The indicator is applicable to all types of charting. Calculated based on the number of columns on P&F charts, bricks on Renko charts, lines on Line-break charts, candles on Heikin ashi charts, and lines on Kagi charts. While the formula and reading of the indicators remain the same, they become more dynamic on these charts.

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